Page No 8.117:
Question 46:
A company issued 10,000 shares of the value
of
` 10 each , payable ` 3 on application, ` 3
on allotment and
` 4 on the first and final call . All
amounts are duly received except the call money on 100 shares
. These shares are subsequently forfeited by Directors and are resold as
fully paid-up for
` 500 .
Give necessary journal entries for the transactions.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
30,000 |
|
|
To Share Application
A/c |
|
|
30,000 |
|
|
(Share
application money received for 10,000 shares at ` 3
each) |
|
|
|
|
|
|
|
|
|
|
|
Share
Application A/c |
Dr. |
|
30,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(Share
application money transferred to Share Capital) |
|
|
|
|
|
|
|
|
|
|
|
Share
Allotment A/c |
Dr. |
|
30,000 |
|
|
To Share Capital A/c |
|
|
30,000 |
|
|
(Allotment
due on 10,000 shares at ` 3 per shares) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
30,000 |
|
|
To Share Allotment A/c |
|
|
30,000 |
|
|
(Share
allotment money received) |
|
|
|
|
|
|
|
|
|
|
|
Share
First and Final Call A/c |
Dr. |
|
40,000 |
|
|
To Share Capital A/c |
|
|
40,000 |
|
|
(First
and final call due on 10,000 shares at ` 4 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
39,600 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
400 |
|
|
To Share First and
Final Call |
|
|
40,000 |
|
|
(First
and final call of ` 4
per share received on 9,900 shares, and 100 shares failed to pay it) |
|
|
|
|
|
|
|
|
|
|
|
Share
Capital A/c |
Dr. |
|
1,000 |
|
|
To Share Forfeiture A/c |
|
|
600 |
|
|
To Calls-in-Arrears A/c |
|
|
400 |
|
|
(100
shares of ` 10
each forfeited for the non-payment of first and final call ` 4
per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
500 |
|
|
Share
Forfeiture A/c |
Dr. |
|
500 |
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
(100
shares of ` 10
each re-issued for the sum of ` 500) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
100 |
|
|
To Capital Reserve A/c |
|
|
100 |
|
|
(Balance
in Share Forfeiture Account after re-issue of shares, transferred to Capital
Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Note
Shares forfeited account (Dr.) |
= |
600 |
Less; Share forfeited account (Cr.) |
= |
(500) |
Balance of share forfeited account after re-issue |
= |
100 |
capital reserve(Amount to be transferred) = Balance of share
forfeited account =100 |
Page No 8.117:
Question 47:
X Ltd. forfeited 900 Equity Shares of ` 100 each for the
non-payment of allotment money of ` 30 per
share and the first call of ` 20 per
share. The second and final call of ` 25 per share has not been
made . The forfeited shares were reissued for ` 90 per share , ` 75 paid-up. Journalise the above.
Answer:
Application |
25 |
Balancing
Figure |
Allotment |
30 |
|
First
Call |
20 |
|
Final
Call |
25 |
Un-called |
|
100 |
|
Called-up ` 75 per share
Books of X Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Equity
Share Capital A/c (900×75) |
Dr. |
|
67,500 |
|
|
To Share Forfeiture A/c |
|
|
22,500 |
|
|
To Calls-in-Arrears A/c |
|
|
45,000 |
|
|
(900
shares of ` 100
each ` 75
called-up, forfeited for the non-payment sum of allotment ` 30
and first call ` 20
per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
81,000 |
|
|
To Share Capital A/c |
|
|
67,500 |
|
|
To Securities Premium
A/c |
|
|
13,500 |
|
|
(900
shares of ` 100
each re-issued as ` 75
paid-up for ` 90
each) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
22,500 |
|
|
To Capital Reserve A/c |
|
|
22,500 |
|
|
(Balance
of Share Forfeiture Account after re-issue, transferred to Capital Reserve
Account) |
|
|
|
|
|
|
|
|
|
Working Notes-
Share
forfeiture account credit |
= |
Share
application money received for 900shares |
|
= |
900×25 `. |
|
= |
22,500 |
Calculation of capital reserve |
|
|
Share
forfeiture account credit |
= |
22,500 |
Share
forfeiture account debit |
= |
Nil |
Capital
reserve |
= |
22,500 |
Page No 8.118:
Question 48:
The
Directors of M Ltd resolved on 1st May, 2015 that 2,000 Equity
Shares of
` 10 each , ` 7.50 paid be forfeited for non-payment of final
call of
` 2.50 . On 10th June, 2015, 1,800 of
these shares were reissued for ` 6 per share . Give necessary Journal entries.
Answer:
Books of M Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
2012 |
|
|
|
|
|
May 01 |
Equity
Share Capital A/c |
Dr. |
|
20,000 |
|
|
To Share Forfeiture A/c |
|
|
15,000 |
|
|
To Call-in-Arrears A/c |
|
|
5,000 |
|
|
(2,000
shares of ` 10
each forfeited for non-payment of final call ` 2.5 per share) |
|
|
|
|
|
|
|
|
|
|
June 10 |
Bank
A/c |
Dr. |
|
10,800 |
|
|
Share
Forfeiture A/c |
Dr. |
|
7,200 |
|
|
To Share Capital A/c |
|
|
18,000 |
|
|
(1,800
shares of ` 10
each re-issued at ` 6
per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
6,300 |
|
|
To Capital Reserve A/c |
|
|
6,300 |
|
|
(Balance
in Shares Forfeiture Account of 1,800 re-issue, transferred to Capital
Reserve Account) |
|
|
|
|
|
|
|
|
|
Working Notes:
Share
Forfeiture |
7.5 |
Cr. |
Share
Forfeiture |
4 |
Dr. |
Balance in Share Forfeiture Account
after re-issue |
3.5 |
Cr. per share |
Capital
Reserve = No. of Shares reissued × Balance in Share Forfeiture Account after
reissue (per share)
=
1,800 × ` 3.5 (per share)
= ` 6,300
Page No 8.118:
Question 49:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
2014 |
|
|
|
|
|
May 01 |
Share
Capital A/c |
Dr. |
|
3,000 |
|
|
To Share Forfeiture A/c |
|
|
2,000 |
|
|
To share first call A/c |
|
|
1,000 |
|
|
(200
shares of ` 15
each forfeited for non-payment of first call `5 per share) |
|
|
|
|
|
|
|
|
|
|
May 01 |
Bank
A/c |
Dr. |
|
2,000 |
|
|
Share
Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Share Capital A/c |
|
|
3,000 |
|
|
(500
shares of ` 10
each re-issued at ` 15
per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
May 11 |
Share
Forfeiture A/c |
Dr. |
|
1,000 |
|
|
To Capital Reserve A/c |
|
|
1,000 |
|
|
(Balance
in Shares Forfeiture Account of 200 shares re-issue, transferred to Capital
Reserve Account) |
|
|
|
|
|
|
|
|
|
Working note;
Distribution
of amount and no. of installment Application
and allotment etc. |
= |
10 |
|
First
Call |
= |
5 |
200
shares |
Second
and final call |
= |
5 |
|
Total |
= |
20 |
|
No. of shares forfeited and
re-issued=200 |
|
|
|
Page No 8.118:
Question 50:
Super
Star Ltd. makes an issue of 10,000 Equity Shares of ` 100 each, payable as:
On application and allotment |
` 50 per
share, |
On first call |
` 25 per
share, |
On second and final call |
` 25 per
share. |
Members holding 400 shares did not pay the second and final call and the shares
are duly forfeited, 200 of which are reissued as fully paid-up @ ` 50 per share. Pass journal entries in the books of the
company.
Answer:
Book of Super Star Limited Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount ` |
Credit Amount ` |
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
5,00,000 |
|
|
To Equity Share
Application and Allotment A/c |
|
|
5,00,000 |
|
|
(Share
Application and Allotment money received for 10,000 shares at ` 50
each) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Application and Allotment A/c |
Dr. |
|
5,00,000 |
|
|
To Equity Share Capital
A/c |
|
|
5,00,000 |
|
|
(Share
Application and Allotment money transferred to Equity Share Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share First Call A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital
A/c |
|
|
2,50,000 |
|
|
(Share
First Call due on 10,000 shares of ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share
First-Call A/c |
|
|
2,50,000 |
|
|
(First
Call money received) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Final Call A/c |
Dr. |
|
2,50,000 |
|
|
To Equity Share Capital
A/c |
|
|
2,50,000 |
|
|
(Equity
Share Final Call due on 10,000 shares of ` 25 each) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
2,40,000 |
|
|
Calls-in-Arrears
A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Final
Call A/c |
|
|
2,50,000 |
|
|
(Share
Final Call of ` 25
per share received on 9,600 shares and holders of 400 shares failed to pay
it) |
|
|
|
|
|
|
|
|
|
|
|
Equity
Share Capital A/c |
Dr. |
|
40,000 |
|
|
To Share Forfeiture A/c |
|
|
30,000 |
|
|
To Calls-In-Arrears A/c |
|
|
10,000 |
|
|
(400
shares of ` 100
each forfeited for the non-payment final call ` 25 per share) |
|
|
|
|
|
|
|
|
|
|
|
Bank
A/c |
Dr. |
|
10,000 |
|
|
Share
Forfeiture A/c |
Dr. |
|
10,000 |
|
|
To Equity Share Capital
A/c |
|
|
20,000 |
|
|
(200
shares of ` 100
each re-issued at ` 50
per share fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
Share
Forfeiture A/c |
Dr. |
|
5,000 |
|
|
To Capital Reserve A/c |
|
|
5,000 |
|
|
(Balance
in Share Forfeiture of 200 shares of after re-issue, transferred to Capital
Reserve) |
|
|
|
|
|
|
|
|
|
Working Note-
Share Forfeiture |
` |
75 |
Cr. |
Share Forfeiture |
` |
50 |
Dr. |
Balance in Share Forfeiture Account
for re-issued shares |
` |
25 |
Cr. per share |
Capital
Reserve = Balance in Share Forfeiture Account for re-issued shares × Number of
Share reissued
= ` 25 × 200 = ` 5,000